Economies of CollaborationBenefits and challenges for VCSE collaboration in bidding for public

sector contracts

Eoin Heffernan

Chief Operating Officer 3SCTrustee Royal Association for Deaf People (RAD)

What is 3SC?

Outsourcing trends and challenges

Commissioning context

Access to Work Wales Case Study

Economies of Collaboration

3SC // Outsourcing // Commissioning // Case Study // Collaboration

Third Sector Consortia LLP (3SC)

3SC bids for and delivers public sector contacts through VCSE consortia

• Bid writing

• Financial modelling

• Solution design

3SC // Outsourcing // Commissioning // Case Study // Collaboration

Third Sector Consortia LLP (3SC)

• Contract negotiation

• Administration, process, data security

• Performance management

3SC // Outsourcing // Commissioning // Case Study // Collaboration

Third Sector Consortia LLP (3SC)

• Started June 2009

• Managing agent “only”

• Honest broker

3SC // Outsourcing // Commissioning // Case Study // Collaboration

Third Sector Consortia LLP (3SC)

• Social enterprise

• Profit into capacity building VCSEs

• 3000 members

3SC // Outsourcing // Commissioning // Case Study // Collaboration

The amount spent on outsourcing services in the UK has doubled to £88bn since the coalition government came to power in 2010

Financial Times July 2014

3SC // Outsourcing // Commissioning // Case Study // Collaboration

3SC // Outsourcing // Commissioning // Case Study // Collaboration

Trends

• Payment by Results (PbR) increasing

• Coalition Government pledged 25% of government spend to SMEs

• Outsourcing scandals (Atos, G4S and Serco) has increased value of practical third sector partnerships and social value creation

3SC // Outsourcing // Commissioning // Case Study // Collaboration

Trends

• Sodexo public service pledge (March 15)

SME, VCSE, staff mutuals partnerships “first” Transparency of revenues Living wage 500 apprentices by end 2016 Equal pay for equal work

3SC // Outsourcing // Commissioning // Case Study // Collaboration

Commissioning Drivers

• Reduced public money – more for less

• Need for efficiencies – reduced capacity in public sector

• Existing approaches not working

• ‘Open Public Services’ – open markets, competition

3SC // Outsourcing // Commissioning // Case Study // Collaboration

Commissioning Wants

• Access to specialist, local expertise that adds and creates value

• Integrated services complementary with existing government and charitable provision

• Mixed and robust economy of provision bringing new ideas, innovation and a healthy VCSE

3SC // Outsourcing // Commissioning // Case Study // Collaboration

The best government programme you’ve never heard of …

Case StudyAccess to Work

3SC // Outsourcing // Commissioning // Case Study // Collaboration

Innovation in Outsourcing award nomination 2012

Best Service award 2013-2014

3SC // Outsourcing // Commissioning // Case Study // Collaboration

3SC // Outsourcing // Commissioning // Case Study // Collaboration

3SC // Outsourcing // Commissioning // Case Study // Collaboration

Bureaucracy

Reporting

Administration

Security Concerns

Storage

Assessments

3SC // Outsourcing // Commissioning // Case Study // Collaboration

We changed the market

Best quality serviceBest achievement against all KPI’sBest price per assessment for our consortium in the market

3SC // Outsourcing // Commissioning // Case Study // Collaboration

MARKET LEADER THROUGH EFFECTIVE CONSORTIUM WORKING

3SC // Outsourcing // Commissioning // Case Study // Collaboration

3SC // Outsourcing // Commissioning // Case Study // Collaboration

White-boarded with everyone in the marketLeveraged the strength of the third sector

Planned long term for customer focussed delivery

Takeaways

3SC // Outsourcing // Commissioning // Case Study // Collaboration

Collaboration

3SC // Outsourcing // Commissioning // Case Study // Collaboration

Consortia – Economies of Collaboration

• Shared delivery, shared risk

• Aggregate for scale

• Shared intelligence, context, learning

• Shared platforms, legal fees

3SC // Outsourcing // Commissioning // Case Study // Collaboration

Collaboration is NOT consensus

• Requires leadership

• Honest broker role

• The best collaborations blur the boundaries of organisation

• Diversify perspectives

3SC // Outsourcing // Commissioning // Case Study // Collaboration

3SC // Outsourcing // Commissioning // Case Study // Collaboration

Eoin Heffernan Chief Operating Officer 3SCLinkedIn https://uk.linkedin.com/in/eoinheffernanmba/Twitter @eoin_heffernan